The cryptocurrency exchange Binance has committed to the Ontario Securities Commission (OSC) to cease operations in the Canadian province.
According to the the document, the company will close existing accounts, terminate registration for new users, and wind down certain services and products.
Binance will inform the OSC of the measures taken, with the involvement of an independent third party.
In a statement, the exchange acknowledged that it had made a number of mistakes in its conduct in the region.
In June the company warned Ontario users about the cessation of service. It set a deadline of December 31 to close open positions.
However, on December 29 Binance said that it would cooperate with regulators and continue operating.
“We now acknowledge that this was incorrect,” the company said.
At that time the OSC replied with a reminder of the exchange’s lack of registration and approvals. In a separately published press release, Binance confirmed the imposition of restrictions, and notified Ontario investors accordingly.
Nevertheless, customer support posted inaccurate information, and users with open accounts were able to continue trading after 1 January 2022. The company stressed that this was “incorrect.”
“Binance informed staff that it intends to follow a regulatory path to ensure compliance with Ontario securities law,” the commitments say.
During 2021, regulators in several countries, including the Netherlands, Italy, the United Kingdom, Poland, Japan, Thailand, Hong Kong, Singapore and South Africa, issued warnings about Binance’s activities or took action against the exchange.
Against this backdrop, Binance introduced mandatory verification of users and announced a departure from a decentralised business model.
Founder and CEO Changpeng Zhao published an open letter outlining plans for enhanced compliance. The exchange articulated “10 fundamental rights of crypto users,” intended to form the basis for discussion and development of global industry regulation.
In March 2022 Binance received crypto licences in Bahrain and Dubai.